Technology, Labor Wars, and Producer Dynamics: Explaining Consolidation in Beefpacking

Beefpacking underwent a dramatic transformation in the 1970s and 1980s, as plants got much larger and industry concentration rose dramatically. We use individual Census Bureau plant records to analyze the sources of the transformation. We find that there were modest but extensive scale economies in packing plants, covering the full range of plant sizes, and that such economies became more important throughout the period of the study. As production shifted to larger plants, we estimate that the industry's aggregate processing costs fell by 35.3% by 2002, compared to what they would have been without consolidation.     

The Economics of Director Heterogeneity

We investigate the potential costs and benefits of firms constituting a heterogeneous pool of directors relative to more homogeneous boards. We measure director heterogeneity along six separate dimensions and divide board heterogeneity into occupational and social components. Our empirical analysis indicates that corporate complexity and managerial control exhibit significant influence on board heterogeneity. Using the heterogeneity of the county population of the firm's headquarters as an instrument, we also find that investors place valuation premiums on heterogeneous boards in complex firms but discount heterogeneity in less complex firms. Overall, our analysis indicates greater heterogeneity may not necessarily improve board efficacy.     

Tariffs versus VAT in the presence of heterogeneous firms and an informal sector

The debate over the use of tariffs or value added taxes in developing countries has focused on the difficulty of collecting VAT from the informal sector. This paper contributes by considering this issue with heterogeneous firms and endogenous entry. This yields two results. First, a cut in the tariff reduces the size of the informal sector. Second, the imposition of VAT need not increase the size of the informal sector. Turning to simulation results, we find that switching from a tariff to a revenue-neutral VAT increases welfare, in part because of the selection effect generated by heterogeneous firms.     

Job guarantees, employability training and partnerships in the retail sector

This paper discusses the potential value of local, partnership-based employability training and job guarantee programmes, focusing on one example—the 'Alloa Initiative'. The Initiative involved an employability training and job guarantee scheme developed in partnership with Tesco, a major retailer, in preparation for the opening of one of the company's new stores. This paper reports on the outputs from this project, which placed 109 disadvantaged job seekers into positions at the store, and proved particularly effective at targeting the long-term unemployed and those with limited experience of the retail sector. The analysis is based on the findings of survey research undertaken with 86 of the 109 training course completers (a 79 per cent response rate) and all the main partners involved in the Initiative. Innovative elements of the training programme that contributed to its positive outcomes are discussed, and a model for 'managing successful partnerships' is applied, in order to identify critical factors explaining the apparent success of the Initiative. In particular, the importance of employers providing job guarantees is noted.     

Regulation,recession, and bank lending behavior: The 1990 credit crunch

This article utilizes a pooled time-series and cross-section sample of banks to investigate the causes of the credit contraction which occurred during the 1990–1991 period. The methodology involves an econometric model which recognizes that banks' decisions regarding lending and capital are simultaneously determined. Bank lending behavior is modeled as being determined by a combination of economic conditions, loan quality problems, and capital growth. The results of the econometric tests are consistent with a multiplicity of factors contributing to the reduction in lending. The evidence suggests that the credit contraction of 1990–1991 cannot be explained solely as a result of recession and low capital levels. Changes in the supervisory climate and in bank capital regulation, perhaps coupled with independent changes in bankers' assessments of the risk climate, were likely responsible for a substantial part of the credit contraction.     

How does financial performance affect marketing? Studying the marketing-finance relationship from a dynamic perspective

In this article, the authors provide a dynamic framework for understanding the relationship between marketing and financial performance. They suggest that firms market to financial markets as well as to consumption markets and that some mixture provides superior long-term performance. The authors discuss the potential pitfalls of overemphasizing one market to the detriment of another and then provide a theoretical model of the factors that influence the extent of marketing to financial markets. This is followed by a discussion of implications for theory, practice, and future research. Mitchell J. Lovett (mitchell.lovett@duke.edu) is a Ph.D. student in the Fuqua School of Business at Duke University. His current research interests include consumer and seller learning in dynamic environments, competitive and dynamic marketing strategies, and the role of marketing in innovation. Jason B. MacDonald (jmacdona@boisestate.edu) is an associate professor of marketing in the College of Business and Economics at Boise State University. His current research interests include the role of marketing in investor relations and Internet marketing strategy.     

The Determinants of Life Expectancy: An Analysis of the OECD Health Data

This study considers an aggregate life expectancy production function for a sample of developed countries. We find that pharmaceutical consumption has a positive effect on life expectancy at middle and advanced ages but is sensitive to the age distribution of a given country. Thus, ignoring age distribution in a regression of life expectancy on pharmaceutical consumption creates an omitted-variable bias in the pharmaceutical coefficient. We find that doubling annual pharmaceutical expenditures adds about one year of life expectancy for males at age 40 and slightly less than a year of life expectancy for females at age 65. We also present results for lifestyle inputs into the production of life expectancy. For example, decreasing tobacco consumption by about two cigarettes per day or increasing fruit and vegetable consumption by 30% (one-third pound per day) increases life expectancy approximately one year for 40-year-old females.     

Pre-aldersonian antecedents to macromarketing: Insights from the textual literature

The article examines the major antecedents to the systemic perspective of macromarketing from the 1920s to the period before Alderson's work. Major developments are presented and evaluated in an approach advocated by Kuhn. The paper draws on the textual literature.